QUAKERTOWN STONY CREEK PASSENGER RAIL RESTORATION BUSINESS PLAN

submitted to

Bucks County Transportation Management Association

submitted by

Gannett Fleming, Inc. ,

January 2006

QUAKERTOWN-STONY CREEK BUSINESS PLAN

TABLE OF CONTENTS INTRODUCTION...... 1

PROJECT BACKGROUND ...... 1 Prior Studies...... 2 Recent Developments...... 3 Federal Funding Authorization...... 3 Revised Project Description ...... 3 Proposed Service...... 4 Patronage & Revenue Forecasting...... 5 Rolling Stock ...... 6 Infrastructure...... 8 Operating costs...... 13

FEDERAL ELIGIBILITY REQUIREMENTS FOR FTA-ADMINISTERED GRANTS ...... 14 Certifications and Assurances...... 14 New Starts Criteria...... 15 FTA Project Development Process...... 15 Alternatives Analysis...... 16 Preliminary Engineering...... 17 Final Design ...... 17 Project Governance...... 17

ORGANIZATIONAL CHANGES...... 19 Existing Organization...... 19 New Nonprofit Corporation...... 19 Purpose...... 20 Organization...... 20 Staffing...... 20 Start-up Procedure for Nonprofit...... 23

NEXT STEPS...... 25 Organizational Steps...... 25 Project Development Steps ...... 25 Coordination Steps...... 25

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INTRODUCTION

The Bucks County Transportation Management Association (BCTMA) anticipates continuing as the public sponsor for the restoration of Quakertown-Stony Creek passenger rail service. Federal authorization was recently received to develop plans and designs for the service. This business plan documents the project background, reviews requirements for federal grant recipients, and outlines an action plan of the steps necessary for the BCTMA to administer those funds as an approved public sponsor.

PROJECT BACKGROUND

The Quakertown-Stony Creek Passenger Rail Restoration Project involves two SEPTA-owned railroad lines: • SEPTA Stony Creek Line, an 11-mile former line that extends from Norristown to Lansdale through Montgomery County. At the south end, the line connects to the SEPTA Norristown Line at “Elm” (immediately south of ). At the north, the line connects to the SEPTA Main Line at “Dale” (immediately south of ). • SEPTA Bethlehem Line, a 28.1-mile former Reading Company line extending from Lansdale through Montgomery, Bucks, Northampton, and Lehigh Counties to Hellertown. At the south end, the line connects to the SEPTA Main Line, Doylestown Line and Stony Creek Lines at “Dale." NS Lehigh and Reading Lines in South Bethlehem). It At the north end, the Bethlehem Line extended another was recently proposed to be abandoned by NS. 4.4 miles to the Lehigh Valley. This segment was retained by the Consolidated Rail Corporation () NS, CSX Transportation (CSXT), and the East Penn and ultimately conveyed to the Norfolk Southern Railways Inc. (EPRY) presently operate freight train Corporation (NS). It was designated by NS as the service over both portions of both lines as far north as Saucon Running Track for a short distance between California Road in Richland Township, Bucks County Hellertown and "Lehigh" (the connection with the (north of Quakertown). Philadelphia, Bethlehem & New England Railroad), Intercity passenger rail service over the Bethlehem Line and as the Bethlehem Secondary Track between was discontinued in 1961. Commuter rail service was "Lehigh" and "CP Bethlehem" (the connection with the maintained between the Lehigh Valley and Philadelphia

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under the auspices of the Southeastern Pennsylvania 1982. A succession of SEPTA's long range plans Transportation Authority (SEPTA) until July 1981, when identified the need to restore passenger rail service between PennDOT operating assistance for rail services outside of Lansdale and Quakertown starting in 1987. SEPTA's jurisdiction was withdrawn. Service was In 1997, the Lehigh and Northampton Transportation maintained between Quakertown (the last station within Authority (LANTA) undertook the Amtrak Thruway SEPTA's jurisdiction) and Lansdale until August 1981, Bus/Lehigh Valley Connections to Philadelphia Rail when SEPTA abandoned all non-electrified commuter rail Service. It investigated the market feasibility of commuter service over a work rules conflict with Conrail crews. rail service between Allentown and Philadelphia. The The Stony Creek Line, in contrast, saw limited study concluded such would be cost effective. passenger service and that was abandoned in 1936. The LANTA study was followed in 2000 by the Passenger traffic between Norristown and Lansdale Quakertown-Stony Creek Rail Restoration Study, primarily used the and more frequent competing rail undertaken by Bucks and Montgomery Counties in service offered by the interurban trains of the Lehigh conjunction with the Valley Regional Planning Valley Transit Company (LVT). LVT operated high- Commission (DVRPC). That study recommended a speed electric train service between Allentown and Upper commuter rail service starting from a park-ride lot Darby via Quakertown, Lansdale, and Norristown, closely alongside PA Route 309 in Shelly, Richland Township, paralleling the Stony Creek and Bethlehem Branch Lines. After interurban train service was abandoned in 1951, LVT and its successors operated bus service over the route through the early 1970s. SEPTA Route 96 and 132 buses have served the corridor as far north as Telford since 1978.

PRIOR STUDIES Attempts were made to restore passenger rail service north of Lansdale almost as soon as it was abandoned. PennDOT, in conjunction with Bucks and Montgomery Counties, tried unsuccessfully to restore service under Act 10 in

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Bucks County (about 21 miles north of Lansdale). mobility within and around the Bucks County area by Commuter rail service would operate between Shelly and managing transportation demand, assisting in the Center City Philadelphia through Bucks and Montgomery improvement of the existing transportation infrastructure, Counties via the SEPTA Bethlehem, Stony Creek and and positively affecting the development of a Norristown Lines. transportation network.

Operating Quakertown trains via Norristown rather than FEDERAL FUNDING AUTHORIZATION the historic route via Jenkintown provides a new cross- In August 2005, President Bush signed the Safe, county connection linking Upper Bucks and North Penn Accountable, Flexible, and Efficient Transportation Act – communities with the employment and commercial centers A Legacy for Users (SAFETEA-LU) authorizing the of the Norristown/King of Prussia area. Trains would federal transportation program for the next six years. operate non-stop between Norristown and Philadelphia, Section 3043 (Project Authorizations for New Fixed offering competitive travel time for Center City Guideway Capital Projects) of the Act authorized commuters. preliminary engineering for Quakertown-Stony Creek (PA) The Quakertown-Stony Creek Rail Restoration Study Rail Restoration among 264 other projects nationwide in concluded that a commuter rail service to Center City Fiscal Years 2005 through 2009 under paragraphs (1)(A) Philadelphia through Norristown would attract between and (2)(A) of Section 5309(m) of Title 49, United States 4,200 to 6,800 weekday passenger trips, 47 percent of Code. 2 whom would be new transit riders (2,000 to 3,200 The latter reference is to a section of the federal weekday passenger trips). Capital costs associated with transportation statute commonly known as "Section 5309 implementing this service were estimated to be about New Starts" (49 USC 5309). It is comprised of rules $211 million1 in 2000 dollars. The service was projected governing funding eligibility as well as a listing of projects to recover between 67 percent of its operating costs and for which funding may be sought. incur an annual operating deficit of about $1.9 million. REVISED PROJECT DESCRIPTION RECENT DEVELOPMENTS REVISED PROJECT DESCRIPTION One modification proposed to the Quakertown-Stony Subsequent to the completion of the 2000 study, BCTMA Creek rail restoration concept as a result of the BCTMA has coordinated a number of regional and local forums to forums was to pursue passenger rail in three successive refine and advance the Quakertown-Stony Creek Rail stages: Restoration Project in concert with Bucks and Montgomery Counties, DVRPC and SEPTA. 1. Quakertown Segment. Initiate service between Shelly and Lansdale (21 miles) as a shuttle linking BCTMA is a non-profit corporation organized in together communities in Bucks and Montgomery compliance with Section 501(c) (4) of the Internal Revenue Counties and connecting with SEPTA Route R5 Code to provide leadership for transportation issues in trains in Lansdale. Bucks County, utilizing the combined resources of the public and private sectors. The Association improves 2. Stony Creek Segment. Extend service between Lansdale and the Norristown Transportation Center 1 About $30 million of the capital cost estimate is associated with improvements to (11 miles) as a shuttle linking the Phase 1 service provide Center City access via the SEPTA Norristown Line. In April 2005, the Schuylkill Valley Rail Assessment Final Report to PennDOT recommended similar improvements as a means of "right sizing" SEPTA's Schuylkill Valley 2 Metro project. If those improvements were implemented, the cost of the SAFETEA-LU Conference Report, Section 3043: Project Authorizations for New Quakertown-Stony Creek project would be reduced. Fixed Guideway Capital Projects

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with the Montgomery County Seat and King of The Phase 1 Quakertown Segment is illustrated in the Prussia employment and commercial centers. diagram to the left. Given the importance of reinforcing Connections are available at Norristown to local transit-oriented land uses, it is proposed to restore all six of and intercity buses and SEPTA Route R6 trains. the former stations that form the center of North Penn and Upper Bucks boroughs. One new park-ride station would 3. Center City Segment. Extend service ultimately be developed in Phase 1 at a site adjacent to PA Route 309 over the SEPTA Norristown Line to Center City at Shelly. The two other park-ride stations recommended Philadelphia (18 miles). by the Quakertown-Stony Creek Rail Restoration Study (Derstines and Franconia) are proposed to be deferred until Phase 2 as both are considered to be too close to the shuttle's Phase 1 southern terminal at Lansdale to be effective. Pursuing the restoration of passenger rail service in stages would significantly reduce the expense and complexity of initial service start-up. Initiating service with shuttle trains operating initially over the Quakertown Segment between Shelly and Lansdale, then over the Stony Creek Segment to Norristown, permits deferring some infrastructure, systems, and rolling stock investments that are only needed to operate direct service to Center City Philadelphia in Phase 3.

PROPOSED SERVICE The timetable for the Quakertown Shuttle would be dependent on a number of factors, including market, SEPTA and freight operating schedules and funding. These factors need to be investigated in detail through a market analysis and operational simulation conducted in conjunction with SEPTA, CSXT, and EPRY. A sample service schedule is provided at the top of the following page for discussion purposes. In this example, Quakertown Shuttle service is scheduled to operate an hourly base service, seven days a week, with additional service in both directions during weekday peak periods for the convenience of commuters. The schedule would operate 21 round trips between Shelly and Lansdale on weekdays and 17 round trips on weekends and major holidays, reflecting SEPTA days of service.

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WEEKDAY SKETCH SCHEDULE Train Number 6512 514 516 520 534 542 546 550 554 558 562 566 570 6576 6598 582 584 588 592 594 596 SEPTA PENN CENTER 5:37A 6:10A 6:44A 7:11A 8:20A 9:27A 10:20A 11:20A 12:20P 1:20P 2:20P 3:20P 4:20P 5:17P 5:38P 6:22P 6:50P 7:50P 8:50P 9:50P 10:50P Route R5 LANSDALE 6:34A 7:03A 7:40A 8:12A 9:14A 10:17A 11:14A 12:14P 1:14P 2:14P 3:14P 4:12P 5:13P 6:03P 6:25P 7:14P 7:42P 8:42P 9:42P 10:42P 11:40P LANSDALE 6:39A 7:08A 7:45A 8:17A 9:19A 10:22A 11:19A 12:19P 1:19P 2:19P 3:19P 4:17P 5:18P 6:08P 6:30P 7:19P 7:47P 8:47P 9:47P 10:47P 11:45P QuakeNorthr - SHELLY 7:13A 7:42A 8:19A 8:51A 9:53A 10:56A 11:53A 12:53P 1:53P 2:53P 3:53P 4:51P 5:52P 6:42P 7:04P 7:53P 8:21P 9:21P 10:21P 11:21P 12:19A Penntown SHELLY 5:39A 6:04A 6:34A 7:37A 8:39A 9:39A 10:39A 11:39A 12:39P 1:39P 2:39P 3:35P 4:36P 5:21P 5:38P 6:10P 7:07P 7:35P 8:39P 9:39P 10:39P ShuttleShuttle LANSDALE 6:13A 6:38A 7:08A 8:11A 9:13A 10:13A 11:13A 12:13P 1:13P 2:13P 3:13P 4:09P 5:10P 5:55P 6:12P 6:44P 7:41P 8:09P 9:13P 10:13P 11:13P Train Number 505 509 513 517 521 525 529 533 537 541 549 4253 573 4157 577 579 583 585 587 589 591 SEPTA LANSDALE 6:21A 6:46A 7:16A 8:19A 9:21A 10:21A 11:21A 12:21P 1:21P 2:21P 3:21P 4:17P 5:18P 6:03P 6:20P 6:52P 7:52P 8:21P 9:21P 10:21P 11:21P Route R5 PENN CENTER 7:15A 7:42A 8:12A 9:15A 10:15A 11:15A 12:15P 1:15P 2:15P 3:15P 4:15P 5:14P 6:12P 7:00P 7:15P 7:45P 8:45P 9:15P 10:15P 11:15P 12:15A

SATURDAY SKETCH SCHEDULE Train Number 6522 1526 1530 1534 1538 1542 1546 1550 1554 1558 1562 1566 1570 1572 1574 1576 SEPTA PENN CENTER 7:20A 8:20A 9:20A 10:20A 11:20A 12:20P 1:20P 2:20P 3:20P 4:20P 5:20P 6:20P 7:20P 8:20P 9:20P 10:20P Route R5 LANSDALE 8:14A 9:14A 10:14A 11:14A 12:14P 1:14P 2:14P 3:14P 4:14P 5:14P 6:14P 7:14P 8:14P 9:14P 10:11P 11:14P LANSDALE 7:19A 8:19A 9:19A 10:19A 11:19A 12:19P 1:19P 2:19P 3:19P 4:19P 5:19P 6:19P 7:19P 8:19P 9:19P 10:16P 11:19P QuakeNorthr - SHELLY 7:53A 8:53A 9:53A 10:53A 11:53A 12:53P 1:53P 2:53P 3:53P 4:53P 5:53P 6:53P 7:53P 8:53P 9:53P 10:50P 11:53P Penntown SHELLY 6:09A 7:09A 8:09A 9:09A 10:09A 11:09A 12:09P 1:09P 2:09P 3:09P 4:09P 5:09P 6:09P 7:09P 8:09P 9:09P 10:39P ShuttleShuttle LANSDALE 6:43A 7:43A 8:43A 9:43A 10:43A 11:43A 12:43P 1:43P 2:43P 3:43P 4:43P 5:43P 6:43P 7:43P 8:43P 9:43P 11:13P Train Number 1511 1515 1519 1523 1527 1531 1535 1539 1543 1547 1551 1555 1559 1563 1567 1571 1575 SEPTA LANSDALE 6:51A 7:51A 8:51A 9:51A 10:51A 11:51A 12:51P 1:51P 2:51P 3:51P 4:51P 5:51P 6:51P 7:51P 8:51P 9:51P 11:21P Route R5 PENN CENTER 7:45A 8:45A 9:45A 10:45A 11:45A 12:45P 1:45P 2:45P 3:45P 4:45P 5:45P 6:45P 7:45P 8:45P 9:45P 10:45P 12:15A

SUNDAY SKETCH SCHEDULE Train Number 2522 2526 2530 2534 2538 2542 2546 2550 2554 2558 2562 2566 2570 2572 2574 2576 SEPTA PENN CENTER 7:20A 8:20A 9:20A 10:20A 11:20A 12:20P 1:20P 2:20P 3:20P 4:20P 5:20P 6:20P 7:20P 8:20P 9:20P 10:20P Route R5 LANSDALE 8:14A 9:14A 10:14A 11:14A 12:14P 1:14P 2:14P 3:14P 4:14P 5:14P 6:14P 7:14P 8:14P 9:14P 10:11P 11:14P LANSDALE 7:19A 8:19A 9:19A 10:19A 11:19A 12:19P 1:19P 2:19P 3:19P 4:19P 5:19P 6:19P 7:19P 8:19P 9:19P 10:16P 11:19P QuakeNorthr - SHELLY 7:53A 8:53A 9:53A 10:53A 11:53A 12:53P 1:53P 2:53P 3:53P 4:53P 5:53P 6:53P 7:53P 8:53P 9:53P 10:50P 11:53P Penntown SHELLY 6:09A 7:09A 8:09A 9:09A 10:09A 11:09A 12:09P 1:09P 2:09P 3:09P 4:09P 5:09P 6:09P 7:09P 8:09P 9:09P 10:39P ShuttleShuttle LANSDALE 6:43A 7:43A 8:43A 9:43A 10:43A 11:43A 12:43P 1:43P 2:43P 3:43P 4:43P 5:43P 6:43P 7:43P 8:43P 9:43P 11:13P Train Number 2511 2515 2519 2523 2527 2531 2535 2539 2543 2547 2551 2555 2559 2563 2567 2571 2575 SEPTA LANSDALE 6:51A 7:51A 8:51A 9:51A 10:51A 11:51A 12:51P 1:51P 2:51P 3:51P 4:51P 5:51P 6:51P 7:51P 8:51P 9:51P 11:21P Route R5 PENN CENTER 7:45A 8:45A 9:45A 10:45A 11:45A 12:45P 1:45P 2:45P 3:45P 4:45P 5:45P 6:45P 7:45P 8:45P 9:45P 10:45P 12:15A

Quakertown Shuttle trains are scheduled to provide PATRONAGE & REVENUE FORECASTING reliable, enforced connections with SEPTA Route R5 A detailed analysis of the travel demand potential was trains to and from Center City Philadelphia at Lansdale. conducted during the Quakertown-Stony Creek Rail When possible, the majority of recovery time in the Restoration Study for three alternatives. Analysis was schedule cycle is conserved at the north end of each trip in based on DVRPC model output with enhancements to Shelly, in order to allow northbound shuttle trains to wait improve its sensitivity to service frequencies and varying for delayed SEPTA trains coming from Philadelphia. station access characteristics. DVRPC prepared the input

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data and performed 1997 and 2020 No-Build runs to Bethlehem Line stations north of Lansdale. About 15 ensure reliable model operation under the supervision of percent of all attractions were to destinations other than the consultant team. DVRPC prepared revisions to Center City Philadelphia or Bethlehem Line stations (i.e.: Transportation Analysis Zones (TAZs) and to highway and destinations that would not be served by the proposed transit links in the model network to focus the level of Quakertown Shuttle). detail within the study corridor. Adjusting the patronage forecasts from the prior study Existing TAZs in the corridor were disaggregated to to account for the differences in service characteristic, provide a finer mesh for analysis and access evaluation. ridership for the Quakertown Shuttle would range between Existing zones were split and the centroid connectors and 377,000 and 613,000 annual passenger trips (between modified highway and transit links were recoded where 1,200 and 2,000 weekday passenger trips. Note that this is needed to provide the desired level of detail. DVRPC a rough estimate sufficient only to provide an "order of provided revised 1995 demographic and employment data magnitude" for discussion purposes. A revised patronage for the split TAZs, based on aerial photographs and maps. forecast needs to be generated based on service The infrastructure changes associated with each alternative characteristics and present-day corridor conditions specific were coded into the networks. Relevant new development to the Quakertown Shuttle proposal. was identified and reflected in the runs of the Build The revenue resulting from the ridership associated Alternatives. with the Quakertown Shuttle was calculated based on DVRPC reviewed the 1995 simulation, data, and extension of the existing SEPTA fare structure. Based on models, and ran and calibrated the 1995 simulation, then the previous discussion of patronage forecasting, the prepared and ran the 2020 No-Build alternative. They Quakertown Shuttle could conceivably generate between provided the simulation model, trip tables, other supporting $2.5 and $4.0 million in fare revenues annually. data including TAZ data, highway and transit networks, ROLLING STOCK and all computer files needed to run the simulation for the ROLLING STOCK corridor. The service pattern outlined above for the Quakertown Shuttle would require three train sets to operate. The The model output expresses patronage forecasts in patronage forecast suggests that two-car trains may be terms of passenger productions and attractions by station required to accommodate peak period passenger demand, (the first two shaded columns). A production represents assuming about 100 passengers per car. This would the origin end of a passenger’s round trip, while an suggest four two-car trainsets would be needed to initiate attraction represents the destination end of a passenger’s service (three trainsets to meet peak service demand and a round trip. For example, one production at Quakertown fourth in reserve as a maintenance spare). Station would represent two weekday passenger trips (one trip to a destination and one trip back). The Quakertown-Stony Creek Rail Restoration Study recommended using single-level push-pull coaches and The modeling process expressed patronage forecasts in dual-powered locomotives capable of operating in non- terms of a range. QSC Alternative 2, which is the closest electrified territory as well as through the Center City in service characteristics to the Quakertown Shuttle Commuter Connector. This was necessary to provide concept, was forecasted to generate between 1.5 and 2.4 Quakertown and Stony Creek Line passengers a one-seat million annual passenger trips, (between 2,620 and 4,267 ride through to in Philadelphia (as weekday passenger trips). About 55 percent of all contemplated for Phase 3). productions and three percent of all attractions were at

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partnership of the Japanese-based Sojitz Corporation and In contrast, the Quakertown and Stony Creek Shuttles the Rotem Company, a Korean railcar manufacturer) to (Phase 1 and 2) remain in open air and will try to offset the provide a new DMU. inconvenience of an enroute transfer for passengers by offering more frequent, convenient service. This level of All of the aforementioned rolling stock is compliant service requires equipment capable of operating effectively with Federal Railroad Administration (FRA) regulations and safely in small consists (i.e., one or two cars) and quick governing joint use operations with other commuter rail turn-arounds at each terminal. Furthermore, DMUs and freight trains. FRA regulations set standards for distribute tractive effort throughout a trainset proportional structural strength and other factors pertaining to railcars so to consist length, in contrast to concentrating all tractive that they may safely commingle with other trains operating effort in a single prime mover as is the case with a on the General System of Railroads throughout the United locomotive-hauled trainset. This results in the superior States. acceleration characteristics in smaller consists, as is Some new rail operations have chosen to use non- expected for Phase 1, and does not require cars be added compliant railcars (i.e., rolling stock that does not entirely for the purpose of preserving safe braking distance. conform to FRA regulations). NJ Transit's new RiverLine Self-propelled diesel railcars (i.e., diesel multiple-unit between Camden and Trenton and a new commuter rail trains or "DMUs") operating singularly or in trainsets service in Austin TX have chosen an alternative approach would be operationally suitable for Phase 1 and 2 shuttle using non-compliant DMUs from European services. DMUs in the form of Budd Rail Diesel Cars manufacturers. While this approach to rolling stock can (RDCs) were the mainstay of Bethlehem Branch service yield potential economies and enhance operating from their introduction on the Reading Company in 1962 flexibility, it carries a heavy regulatory burden, however, through abandonment in 1981. Rehabilitated RDCs are including a requirement for temporal (in fact, diurnal) still operating in regular revenue service. Dallas Area separation of passenger and freight trains. Regional Transit used 13 RDCs to start its highly A non-compliant railcar is not be a realistic option for successful Trinity Railway Express service between Dallas Quakertown-Stony Creek service, however. In Phase 1, it and Fort Worth TX. would require that CSXT and East Penn freight operations Modern DMUs are also being manufactured in the be relegated into narrow service windows between United States. Colorado Railcar Manufacturing has Midnight and 5:00 AM when passenger trains do not recently built single and bi-level DMUs for the South operating. Special design and operational procedures Florida Regional Rail Authority (Tri-Rail) service based in would be needed in the Lansdale terminal area to positively Miami FL (the single-level car is illustrated above). The separate Quakertown Shuttle movements from SEPTA Triangle Transit Authority in Raleigh-Durham NC has Route R5 trains and freight train activity, which would contracted with United Transit Systems (a domestic likely reduce operational flexibility for all four carriers.

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The challenges associated with using a non-compliant mph operation for passenger trains and 40 mph operation railcar would be exacerbated in Phase 2. Passenger trains for freight trains. would need to be temporally separated from CSXT and NS A 1999 condition assessment indicated that a complete freight train operations. It would be impossible for a non- tie replacement and rehabilitation of the underlying track compliant vehicle to share the existing SEPTA Norristown bed and drainage systems was needed between Lansdale Line track with Route R6 trains in order to access the and Shelly, but much of the existing rail could be reused. Norristown Transportation Center. Rail, ties and roadbed would all be needed between For these reasons, a non-compliant rolling stock California Road and the end of track at Shelly. strategy is not recommended. The estimated capital cost Operating a single-track passenger railroad with passing for eight compliant DMUs is about $23.9 million. sidings requires excellent schedule adherence. This is an INFRASTRUCTURE unrealistic expectation for a frequent shuttle service as proposed for the Quakertown Shuttle in Phase 1. Waiting The infrastructure investments recommended for the for a delayed connecting train in Lansdale, a northbound Bethlehem Line in the Quakertown-Stony Creek Rail shuttle would affect southbound movements that need to Restoration Study were based on an operational plan that stay on-time to make their own connections in Lansdale. anticipated through-trains scheduled and running relatively The result would be a cascading series of delays that would independent of other SEPTA regional rail operations. In extend throughout the service day. contrast, the Quakertown Shuttle proposed for Phase 1 would be heavily influenced by the schedule and reliability The alternative approach proposed would be to restore of SEPTA Route R5 connections in Lansdale. The both tracks to operating condition so that the reliability of underlying premises associated with past infrastructure northbound and southbound trains is operationally recommendations need to be revisited in light of the uncoupled. This approach would also reduce the number proposed three-stage service implementation strategy. The of signal interlockings needed on the alignment, which following sections represent a cursory review of past would represent a significant investment in special concepts. trackwork and signal systems. Track-related capital costs were estimated to be about TRACKWAY $35.3 million based on this approach. This includes four The Bethlehem Line is a double-track alignment with the intermediate, trailing crossovers to support freight exception of a short single-track segment through the operations and to enhance flexibility during extraordinary Perkasie Tunnel. Track condition has progressively operating conditions. Judicious use of trailing point spring deteriorated in the quarter century since the abandonment switches would reduce or possibly eliminate the need for of passenger rail. CSXT and EPRY presently maintain a remote operation of switches. single main line track in service from Lansdale to A North Penn shippers' association is presently working California Road, north of Quakertown. in conjunction with PennDOT, DVRPC, CSXT, EPRY The prior study recommended restoring a single track and SEPTA to upgrade the condition of the Bethlehem between Lansdale and Shelly with passing sidings at Line to at least a condition compatible with FRA Class 2 strategic locations based upon scheduled meeting points for standards for maintenance. Such capital investments north and southbound trains. Running times were based on should be encouraged, coordinated and documented, as: restoring line and profile to a condition compatible with FRA Class 3 standards for maintenance, permitting 60

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• Improvements should be designed not to preclude control. This is the approach undertaken by the new the restoration of passenger rail service; and commuter rail service presently under construction in • Private and public investments that improve Austin TX. Bethlehem Line track conditions might be eligible Capital cost for train control systems were estimated to as local match for federal funding purposes. be about $1.1 million based on this approach. It was assumed that the single-track section of track through the STRUCTURES Perkasie Tunnel either would be bi-directionally signaled No specific structural improvements were identified as (Rule 261) or protected in some other positive manner. needed for the Quakertown Segment in previous studies. Facing point switches in dark territory would be protected Past difficulties with assigning responsibility for overhead by electric locks. "orphan" bridges have been resolved with PennDOT and the municipalities and most have been replaced in recent HIGHWAY GRADE CROSSINGS years. Undergrade bridges remain the railroad's There are 34 highway grade crossings on the Bethlehem responsibility and the condition of these bridges and Line between Lansdale and Shelly, 29 of which are public culverts will need to be confirmed in greater detail in order crossings. These crossings and the crossing protection to determine the continuing sufficiency of structures along currently in effect are itemized in the table on the following the line and/or the cost of mitigating maintenance. The page. condition of the Perkasie Tunnel will require a similar Most of the public crossings (25) are equipped with assessment. automatic flashers and bells but only nine are also TRAIN CONTROL SYSTEMS equipped with gates. One active public crossing is only signed with crossbucks and three north of the end of active The Bethlehem Line was once signalized in its entirety, but track are out of service. train control appliances were removed soon after the abandonment of passenger service in 1981. The line is Capital costs for highway grade crossing improvements presently unsignalized "dark territory" beyond the northern were estimated assuming that all public crossings would be limits of Dale Interlocking in Lansdale. CSXT and EPRY upgraded to full flashers, bells and gates. This is consistent train movements are manually dispatched in accordance with current industry practice with respect to new with NORAC rules (Rules 97 and 98). passenger rail services. The cost of such improvements is estimated to be about $1.7 million. The prior study recommended resignaling the line in conjunction with restoring a single track between Lansdale One of the five private crossings on the line are and Shelly with passing sidings at strategic locations. equipped with flashers, bells and gates (although its gate However, the alternate approach described earlier in the arm blades were noted as missing during a January 2006 Trackway section suggested restoring both tracks in order inspection), All private crossings should be upgraded to to maintain service reliability. Given the operational flashers, bells and gates upon the restoration of passenger flexibility of this approach and the limited level of service rail service or eliminated. Responsibility for upgrading anticipated under Phase 1, a sophisticated train control private crossings should reside with the property owner, system may not be required as an initial investment. but that needs to be confirmed through review of crossing agreements currently in effect with SEPTA. Under this approach, the Bethlehem Line would remain dark territory and train movements would be safely dispatched under NORAC rules governing manual train

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A C T I V E C R O S S I N G S PASSENGER STATIONS Crossing Municipality Milepost Signs Flashers Gates Private Eight passenger rail stations are proposed under Phase 1 of Broad St Lansdale Borough MP24.2 JJJ the Quakertown-Stony Creek service restoration project, as Main St Lansdale Borough MP24.4 JJJ identified in the following table. These include six former Cannon Av Lansdale Borough MP24.9 JJ stations at the core of North Penn and Upper Bucks Eighth St Lansdale Borough MP25.1 JJ boroughs and one new park-ride station at Shelly, adjacent Private Hatfield Township MP25.6 JJto PA Route 309. Schwab Rd Hatfield Township MP26.0 JJ Orvilla Rd Hatfield Township MP26.1 JJ Station Municipality Milepost Existing Former New Vine St Hatfield Borough MP26.5 JJ Lansdale Lansdale Borough MP24.2 J Main St Hatfield Borough MP26.7 JJJ Hatfield Hatfield Borough MP27.1 J Union St Hatfield Borough MP27.4 JJJ Souderton Souderton Borough MP29.6 J Bergey Rd Hatfield Township MP28.0 JJ Telford Telford Borough MP30.9 J Township Line Rd Hatfield Township MP28.7 JJ Sellersville Sellersville Borough MP33.6 J Broad St Souderton Borough MP29.6 JJJ Perkasie Perkasie Borough MP35.0 J Central Av Souderton Borough MP29.9 JJ Quakertown Quakertown Borough MP40.2 J Reliance Rd Souderton Borough MP30.2 JJ Shelly Richland Township MP44.5 J Third St Telford Borough MP30.5 JJ TOTALS: 1 6 1 Main St Telford Borough MP30.9 JJJ Washington St Telford Borough MP31.1 J All stations will be compliant with the requirements of Meetinghouse Rd West Rockhill Township MP32.1 JJ the Americans with Disability Act of 1990, which Clymers Av Sellersville Borough MP33.1 JJ mandates that at least one car per commuter rail train will Park Av Perkasie Borough MP34.6 JJ be fully accessible. All Phase 1 trains would consist of a single car except during peak periods, when two-car Market St Perkasie Borough MP35.0 JJJ consists would operate. For simplicity during Phase 1, all Rockhill Quarry West Rockhill Township MP37.3 JJJJ passengers will board and alight via a mini-high block Private West Rockhill Township MP38.1 JJ platform. Paletown Rd Richland Township MP38.8 JJ • Each Borough Station (6) would be furnished two Private Richland Township MP39.5 JJ mini-high block platforms, one for each direction. Fairview Rd Quakertown Borough MP39.9 JJ • The north terminal at Shelly would also be JJJ Hellertown Rd Quakertown Borough MP40.0 furnished two mini-high block platforms arrayed in Broad St Quakertown Borough MP40.4 JJJ tandem on the northbound track (permitting two Mill St Quakertown Borough MP40.8 JJ trainsets to terminate simultaneously under California Rd Richland Township MP42.4 extraordinary operating conditions). Cherry Rd Richland Township MP43.7 • The south terminal at Lansdale would be furnished Mine Rd Springfield Township MP44.5 with one mini-high on the westernmost platform

Private Springfield Township MP44.6 Service of Out J adjacent to Main Line Track #1 (Bethlehem TOTALS: 34 30 26 10 5 Industrial Track) and another on the center

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platform between Main Line Tracks #1 and #2 • 214 newly improved spaces are already available at (Bethlehem Running Track). The latter would be Telford, Sellersville and Perkasie Stations. configured to permit southbound passengers to • 330 spaces are available in various states of repair transfer directly from a Quakertown Shuttle to a at five stations. SEPTA Route R5 train without descending to • Developable area for 110 new spaces is also platform level. available at Souderton and Sellersville. • Provisions will be made for platform canopies, Another 250 new parking spaces can be constructed at a windscreens, improved lighting and other new park-ride station adjacent to PA Route 309 at Shelly. passenger amenities at all eight stations. Most of the former passenger stations have been converted The capital costs for developing these 690 unimproved to commercial uses. There is no intention of and new parking spaces are estimated to be about $1.3 recovering and reusing former passenger stations million. except for Quakertown, if available, which has MAINTENANCE FACILITIES been restored for use as a community center. MAINTENANCE FACILITIES A maintenance facility is planned adjacent to the northern Capital costs for stations, assuming this approach, were terminal at Shelly. It would need to support storage, estimated to be about $3.5 million. servicing, routine maintenance and inspection cycles for PARKING FACILITIES the eight DMUs proposed for Phase 1. It is anticipated that heavy repairs and component maintenance will be handled Parking is assumed to be the mode of access for up to 90 under contract by off-site vendors whenever possible to percent of Quakertown Shuttle passengers. If correct, that keep the size of the facility and staff to a minimum, assumption suggests that a minimum of 900 parking spaces manageable size. would be needed along the Quakertown Segment to meet Phase 1 ridership demand. Based on these expectations, the capital costs for the maintenance facilities are estimated to be about $2.9 There are currently about 544 parking spaces available million. at former borough stations, consisting of:

P A R K I N G S P A C E S Station Municipality Improved Unimproved New Total Lansdale Lansdale Borough N o t A p p l i c a b l e Hatfield Hatfield Borough 75 75 Souderton Souderton Borough 70 60 130 Telford Telford Borough 111 111 Sellersville Sellersville Borough 58 20 50 128 Perkasie Perkasie Borough 45 15 60 Quakertown Quakertown Borough 150 150 Shelly Richland Township 250 250 TOTALS: 214 330 360 904

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RIGHT OF WAY SUMMARY Right of Way acquisition requirements are limited as most The following table summarizes the estimated capital costs Phase 1 infrastructure improvements are confined to for the start-up of the Quakertown Shuttle service. SEPTA property. New property will be required, however, Trackway$ 35,100,000 for the new park-ride station and maintenance facility at Shelly. Minor property acquisition may possibly be Train Control Systems$ 1,082,000 required at other locations as well. A placeholder $1.5 Highway Grade Crossings$ 1,736,000 million for right of way acquisition was included in the capital cost estimate until requirements are determined in Passenger Facilities$ 3,467,000 more specific detail. Station Parking$ 1,314,000

REVENUE COLLECTION Maintenance Facilities$ 2,892,000 As noted earlier, it is anticipated that the fare structure on Utility Allowance$ 85,000 the Quakertown Shuttle will be consistent with SEPTA's in Rolling Stock & Fare Equipment$ 24,596,000 order to provide for seamless connections to and from SEPTA Route R5 trains and the whole of the regional Right of Way$ 1,500,000 transit network. For that reason, SEPTA fare instruments SUBTOTAL:$ 71,772,000 will be employed for the Quakertown Shuttle. Engineering/Environmental Soft Costs$ 23,610,000 It is proposed to mount a fare vending machine for TOTAL:$ 95,382,000 single trip rides aboard each DMU. Under this approach, fare vending machines will last longer and be more reliable when kept protected from inclement weather. They can be serviced in the controlled and secure of environment of the maintenance facility. It is desirous to spare on-board employees the distraction and risk of handling the cash. The estimated capital costs for fare vending machines are estimated to be about $700,000.

ENGINEERING & ENVIRONMENTAL SOFT COSTS Standard factors were applied to the above rolling stock and infrastructural costs to account for the anticipated "soft costs" associated with project development, including: • Contractor Mobilization • Design Engineering • Environmental Assessment • Construction Management • Contingency About $23.7 million in "soft costs" were identified in this manner.

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OPERATING COSTS An O&M cost model was based on National Transit An order of magnitude estimate of Quakertown Shuttle Database cost information from diesel commuter rail operations and maintenance (O&M) costs was developed operating agencies in the Northeastern United States. Data based on the operating schedules that are presented included the Massachusetts Bay Transportation Authority, elsewhere in this report. The following table provides the Maryland Mass Transit Administration (MARC), the pertinent operating statistics drawn from the proposed Connecticut Department of Transportation (Shore Line schedules. East), and Virginia Railway Express. All of the selected systems are East Coast commuter rail services operated under contract to a third-party, private contractor. Weekdays Saturday Sunday Annual Train Trips 42 17 17 12,655 A simple O&M model was based solely on revenue Vehicle Trips 58 17 17 16,783 vehicle-hours of service, which is a reasonable basis for Train Miles 1,726 699 699 520,121 producing O&M cost estimates at a conceptual planning Vehicle Miles 2,384 699 699 689,781 level. The historical data was inflated to current year Revenue Train Hours 40 33 33 13,883 dollars to yield a value of $250.57 per revenue vehicle- Revenue Vehicle Hours 53 33 33 17,146 hour (adjusted for one-man operation), which was multiplied against the revenue vehicle-hours of service O&M costs would vary depending upon the method described in the operating schedule, to produce O&M cost ultimately selected for service delivery. Direct operation— estimates for the Quakertown Shuttle service. the approach taken by SEPTA, NJ Transit, and the New The annual O&M cost estimates are summarized on the York Metropolitan Transportation Authority—is not the following table. The cost estimates were compared to the preferred service delivery approach taken by most range of revenue estimates discussed earlier in this report, commuter rail agencies. Most North American commuter the results of which are also summarized below. rail services are operated under contract either by an independent freight railroad carrier or a third-party, private Annual Operating Cost $ 4,296,000 contractor, such as Hertzog and Connex. There is a further Annual Fare Revenue (Range) $ 2,471,000 $ 4,024,000 trend in the industry to parse operating and maintenance Annual Deficit (Range) $ 1,825,000 $ 272,000 contracts, with the vehicle supplier (such as Bombardier) Operating Ratio 58% 94% often filling that role. Contracting would be a rational service delivery approach for BCTMA. The pool of potential contractors could include: • Private, third-party contractors (e.g.: Hertzog or Connex); • Freight railroad carriers (e.g., East Penn Railways or CSXT; and • Public entities that contract for service (e.g.: SEPTA or Amtrak).

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FEDERAL ELIGIBILITY authority and financial capacity, openness of books, REQUIREMENTS FOR FTA- ADMINISTERED GRANTS safeguards against conflicts of interest, compliance with Civil Rights Act and other nondiscrimination Use of federal New Starts funding entails compliance with statutes, compliance with real property acquisition the requirements set forth in Section 5309 New Starts policies, Davis-Bacon Act, flood insurance criteria (49 USC 5309) by a public agency designated by program, comply with FTA requirements for the Federal Transit Administration (FTA) as a grant engineering, drafting, NEPA, Clean Air Act, recipient. In order to receive grants administered by FTA, Endangered Species Act, and other relevant potential grantees must comply with FTA’s Master statutes. 3 Agreement. Compliance includes submission of 2. Lobbying: Federal funds may not be used for documents to attest that applicants are in compliance with lobbying or related activities. the most-recent Certifications and Assurances regulations 3. Private Mass Transportation Companies: published annually in the Federal Register. 4 Recipients must clarify how the proposed service CERTIFICATIONS AND ASSURANCES will impact any privately-owned pre-existing service within the vicinity. In order to receive federal funding, potential recipients must provide certain certifications and assurances that 4. Public Hearing: A process must be in place to represent FTA’s current expectations concerning the ensure that the public is provided an adequate capabilities and responsibilities of grant recipients. The opportunity to comment on the proposed project FTA list of certifications and assurances is updated and is consistent with existing planning and annually and all recipients must recertify each year. development goals. FTA identifies 16 potential areas of compliance; 5. Acquisition of Rolling Stock: Applicants must although not each area is applicable to every recipient. comply with 49 USC 5323 concerning the Signatures from the applicant, as well as from an attorney, acquisition of rolling stock. are the standard method of attesting compliance with 6. Bus Testing: All buses acquired must comply certification and assurances. Applicants may also record with federal procedures and be tested at an FTA- their certifications and assurances electronically via FTA’s approved testing facility. Transportation Electronic Award Management (TEAM) grant management interface. 7. Charter Service Agreement: Recipients who plan to operate, or contract out operations, of The most recent 16 areas of certification and assurances charter service must comply with FTA’s Charter are as follows. Service Agreement. 1. OMB Certification and Assurances 8. School Transportation Agreement. FTA-funded Compliance: Recipients must certify compliance services may not compete with or supplement attesting to their overall eligibility to receive federal school services. funds developed by the Office of Management and Budget but edited for FTA use. There are nineteen 9. Demand Responsive Service. Provision of identified subcomponents dealing with legal demand responsive service to persons with disabilities must be equivalent to the level and 3 49 U.S.C. 5323(n) 4 http://www.fta.dot.gov/legal/federal_register/2004/12174_16165_ENG_HTML.htm

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quality of service provided to persons without • FTA Project Development Process. FTA disabilities. requires recipients of New Starts funding to follow a prescribed project development process, which is 10. Alcohol Misuse and Prohibited Drug Use. described in greater detail in the following section. Applicant is required to demonstrate compliance with FTA’s Drug and Alcohol rules for transit • Project Justification. FTA requires recipients of operators. New Starts funding to develop justifications for the proposed project through the application of a set of 11. Interest and Other Financing Costs. Applicant criteria. Most of the criteria are quantifiable and must certify that they will comply with rules relate to air quality and mobility benefit. governing interest and other costs related to any • Local Financial Commitment. FTA requires financing they receive. recipients of New Start funding to identify the level 12. Intelligent Transportation Systems. Recipients and sources of local funding to support capital and must certify that any ITS investment must support on-going operating costs and to ensure they will be the National ITS Architecture and FTA’s “National in place for the project. Normally the local ITS Architecture Policy on Transit Projects.” commitment speaks to the financial condition of 13. Urbanized Area, JARC and Clean Fuels the sponsor and how the system will be operated Program. Recipients must comply with rules and maintained once service initiates. concerning reporting requirements for projects in FTA PROJECT DEVELOPMENT PROCESS these funding categories. Projects seeking federal New Starts funding must emerge 14. Elderly & Disabled Program. Applicant must from a locally-driven, multimodal corridor planning comply with rules governing projects financed process. There are three phases in the planning and project using this FTA funding category. development process for projects: 15. Non-Urbanized Area Formula Program. • Alternatives Analysis Applicant must comply with rules governing • Preliminary Engineering projects financed using this FTA funding category. • Final Design 16. State Infrastructure Bank Program. Applicant The steps are illustrated in the chart on the next page must provide State certification of sufficient and described in the following paragraphs. documentation regarding the use of State Infrastructure Bank funds. Note that there are faster, alternate approaches to project development that BCTMA may choose to pursue. Choices NEW STARTS CRITERIA NEW STARTS CRITERIA include: While compliance with Certifications and Assurances • FTA Small Starts Process. This is a simplified ensures that the recipient is eligible, New Starts criteria are process for projects no more that $250 million and a separate set of guidelines that governs how new transit requiring less than $75 million in federal funding “guideway” projects are planned, implemented and (as currently conceived, the $95 million operated. Quakertown Shuttle start up would fit in this Federal guidance categorizes the New Starts criteria into category). three broad areas:

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• Eschewing Federal Funds. This is was the approach taken by NJ Transit for the RiverLine, which was implemented entirely with state funding. This approach would relieve the project of complying with FTA and NEPA project processes. It would be unrealistic to pursue, however, given the current state of transit funding in the Commonwealth of Pennsylvania. Such choices are typically made at the end of the alternatives analysis, based on overall project costs, the availability of state and local funding, and the magnitude of federal funding requirements.

ALTERNATIVES ANALYSIS To specifically qualify for Section 5309 New Starts funding, candidate projects must have resulted from an alternatives analysis (also known as major investment study or multimodal corridor analysis) study which evaluates appropriate modal and alignment options for addressing mobility needs in a given corridor. Alternatives analysis can be viewed as a bridge between systems planning, which identifies regional travel patterns and transportation corridors in need of improvements, and project development, where a project’s design is refined sufficiently to complete the processes required under the National Environmental Policy Act of 1969 (NEPA). The alternatives analysis study is intended to provide information to local officials on the benefits, costs, and impacts of alternative transportation investments developed to address the purpose and need for an improvement in the corridor. Potential local funding sources for implementing and operating the alternatives should be identified and studied, and New Starts criteria should be developed. At local discretion, the alternatives analysis may include the undertaking of a Draft Environmental Impact Statement (DEIS). Involvement of a wide range of stakeholders (including the general public) in the alternative analysis study process is strongly encouraged.

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Alternatives analysis is considered complete when a determined by FTA to have the technical capability to locally preferred alternative (LPA) is selected by local and advance further in the project development process must regional decision-makers and adopted by the metropolitan request FTA approval to enter final design (and submit planning organization (MPO) into the financially- updated New Starts criteria for evaluation). constrained metropolitan transportation plan. At this point, FINAL DESIGN the local project sponsor may submit to FTA the LPA’s FINAL DESIGN New Starts project justification and local financial Final design is the last phase of project development, and commitment criteria and request FTA’s approval to enter includes right-of-way acquisition, utility relocation, and the into the preliminary engineering phase of project preparation of final construction plans (including development. construction management plans), detailed specifications, construction cost estimates, and bid documents. The Two feasibility studies have been completed for project’s financial plan is finalized, and a plan for the Quakertown-Stony Creek rail restoration, but collection and analysis of data needed to undertake a additional work is needed to complete required Before and After Study (which is required of all projects elements of the alternatives analysis phase of seeking an Full Funding Grant Agreement) is developed. project development and identify a Local Preferred Alternative (LPA) through DVRPC PROJECT GOVERNANCE before FTA will approve entry into Preliminary Generally, Section 5309 New Start funds are available to Engineering. designated recipients that must be public bodies (i.e. states, PRELIMINARY ENGINEERING counties, cities, towns, regional governments, transit authorities) with the legal authority to receive and dispense During the preliminary engineering phase of project Federal funds. In the Philadelphia area, past recipients development, local project sponsors refine the design of the include PennDOT, the Delaware Valley Regional Planning proposal, taking into consideration all reasonable design Commission, the Southeastern Pennsylvania alternatives. Preliminary engineering results in estimates of Transportation Authority, the Port project costs, benefits, and impacts at a level of detail Authority, New Jersey Department of Transportation and necessary to complete the NEPA process. The proposed New Jersey Transit. States and other public bodies may project’s New Starts criteria are similarly refined in the apply for funds on behalf of a private nonprofit, provided preliminary engineering phase of development; project they public body acts as a pass-through agency and public management plans are updated; and local funding sources sponsor. are committed to the project (if not previously committed). SEPTA is a designated FTA grant recipient and FTA typically assigns project management oversight participated in the 1997 and 2000 studies, but has declined contractors to projects undergoing PE to ensure that the to take a leadership role in the restoration of Quakertown- engineering effort progresses in accordance with FTA Stony Creek passenger rail service. Bucks and requirements, and that the project sponsor is adequately Montgomery Counties are also designated FTA grant preparing for the final design stage of development. recipients, but have delegated the leadership in these Preliminary engineering for a New Starts project is matters to BCTMA. considered complete when FTA has issued a Record of Decision (ROD) or Finding of No Significant Impact BCTMA is not a designated FTA grant recipient. The (FONSI), as required by NEPA. Projects which complete approval process for a new grant recipient can take up to a preliminary engineering and whose sponsors are year to complete, however, and the restoration of

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Quakertown-Stony Creek rail service would be in hiatus service restoration. Furthermore, it would help indemnify until the matter was resolved. It would likely also require BCTMA from any liabilities arising from the Quakertown- significant changes in the organization and governance of Stony Creek service and separate funds dedicated to the BCTMA that may conflict or interfere with some of the rail restoration project from BCTMA’s general funds other responsibilities of the TMA. derived from public and private sources. As an alternative approach, BCTMA could partner with The creation of the new non-profit organization and one or more public bodies in order to access federal funds, related organizational changes are discussed in the next manage planning and design tasks, and provide for section. construction and operations through third-party contractors. FTA can be expected to insist that an existing public body serve as the public sponsor for this grant. Because of the local benefits of the project, Bucks and Montgomery Counties would be ideal choices to serve as designated public bodies, provided they would agree to perform this function. An administrative process joining the BCTMA to the two counties would be required. The terms of this process must be specified through the use of a memorandum of understanding (MOU) between BCTMA and the Counties. The purpose of the MOU would be: • Identify the relationship and responsibilities of each party; • Describe the process by which the entities involved will comply with FTA rules and regulations for potential grant recipients, including Certifications and Assurances and grant administration; • Define the method for distributing grant funding; and • Identify the scope and period of the agreement. In order to be effective, the MOU also should be developed in consultation with FTA Region 3 and approved by their Regional Counsel. Compliance with FTA rules concerning Certifications and Assurances and execution of a FTA Master Agreement likely would be eased if a new nonprofit corporation was created, associated with but functionally independent of BCTMA. This action would provide a dedicated organizational unit focused on implementation of rail

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ORGANIZATIONAL CHANGES rail, albeit steel-wheeled rather than rubber-tired. Therefore, BCTMA is a logical agency to manage the EXISTING ORGANIZATION development and operation of that service. BCTMA was chartered as a non-profit corporation However, the Quakertown Shuttle is also considerably organized in compliance with Section 501(c)(4) of the different than BCTMA's bus shuttles in terms of scale and Internal Revenue Code to provide leadership for scope: transportation issues in Bucks County, utilizing the combined resources of the public and private sectors. The • It is considerably more dependent upon built Association improves mobility within and around the infrastructure that must be designed and Bucks County area by managing transportation demand, maintained in accordance with specific operational assisting in the improvement of the existing transportation requirements. infrastructure, and positively affecting the development of • It requires more intensive and on-going a transportation network. coordination of operations with the other rail users (SEPTA, CSXT and EPRY). BCTMA staff currently consists of five positions. BCTMA activities are overseen by the BCTMA Board of • It would represent a disproportional share of the Directors. A chart of the current organizational structure of total BCTMA budget, a disparity that will increase the BCTMA is below. as the project advances towards implementation. • It serves communities in Montgomery County as well as Bucks County. A rail project the magnitude of the Quakertown-Stony Creek rail restoration project requires a focused approach to its management. It is therefore prudent to evaluate the organizational structure of the Association in light of the requirements of the Quakertown Shuttle as the project progresses through planning, design and construction to implementation.

NEW NONPROFIT CORPORATION Creation of a new nonprofit corporation, associated with but functionally independent of BCTMA, was suggested in order to: • Provide focused management of the Quakertown- Stony Creek rail restoration efforts. A major focus of BCTMA activities to date has been • Help indemnify BCTMA from any liabilities extending SEPTA regional rail system in Bucks County arising from the Quakertown-Stony Creek rail through a series of shuttles (the Warminster, Street Road, restoration project or ensuing service. Newtown and Bristol Rushes and the Doylestown Dart) • Separate funds dedicated to the rail restoration designed and operated in response to local community project from BCTMA’s general funds derived from needs. Functionally, the proposed Quakertown Shuttle represents another community-based extension of regional

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various public and private sources for specific relationship between the New York Metropolitan purposes. Transportation Authority (MTA) and the MTA operating authorities (MTA NYC Transit, MTA Bus, MTA Long PURPOSE PURPOSE Island Railroad, MTA Metro-North, and MTA Capital) Nonprofit corporations are typically organized for the and locally between the Delaware River Port Authority and purpose of serving a public or mutual benefit other than the the Port Authority Transit Corporation. pursuit of profit. Nonprofit corporations are tax-exempt The BCTMA Board of Directors plays a key role and function in accordance with specific requirements and ensuring policy continuity and coordination between the limitations enforced by the Internal Revenue Service (IRS). activities of BCTMA and QSCRA. The proposed In this instance, the nonprofit organization would be governance mechanism for this would be the Quakertown- one recognized as tax-exempt under IRS 501(c)(4). Stony Creek Rail Committee (QSCRC), which would be Organizations recognized as 501(c)(4) nonprofit established as a standing committee of the BCTMA Board. corporations have no “charitable” obligation (as opposed to QSCRC membership should reflect equal representation of the more common 501(c)(3) organization). A legal the three public entities with fiduciary interest in QSCRA opinion will be necessary to identify the precise type of — BCTMA, Bucks County and Montgomery County — nonprofit organization to be established. advised by non-voting ex-officio members with a direct interest in the commuter rail project. The purpose of the new nonprofit corporation (referred to herein as the "Quakertown-Stony Creek Rail Ex-officio QSCRC members would possibly include Association" or "QSCRA") would initially be to manage representatives from both County Planning Commissions, project development of the Quakertown-Stony Creek rail FTA Region 3, DVRPC, PennDOT, SEPTA, CSXT, restoration in compliance with FTA Section 5309 New EPRY, municipalities and local shippers. As noted earlier, Starts criteria. As the project advances from planning to the BCTMA Executive Director would also participate in construction and operations, QSCRA ultimately would be QSCRC in an advisory capacity. responsible for managing the operation of commuter rail To avoid redundancy, minimize overhead, and maintain service through a third-party contractor. economies of scale, BCTMA is proposed to continue to ORGANIZATION provide administrative, payroll and accounting functions for QSCRA and other logical services, such as marketing The organization of QSCRA is proposed to reflect that of coordination and communications. A MOU should be BCTMA. QSCRA would be headed by an Executive executed between the two organizations to delineate these Director and governed by a Board of Directors. The need functions and identify a schedule of fees for such services. for the two organizations to be associated but functionally independent of each other is proposed to be addressed STAFFING through sharing a common Board of Directors. The QSCRA staffing requirements would vary depending upon BCTMA Executive Director would report to the QSCRA the current phase of project development and the methods Board in an advisory capacity while maintaining regular selected for design, construction and service delivery. The work assignments to operate the transportation overall goal proposed for staffing the organization, management association. however, is to minimize overhead and long-term This approach has been employed by other transportation obligations by keeping a small permanent staff augmented organizations with similar coordination needs, such as the through judicious use of consultants and other temporary

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staffing strategies. This approach reflects a current is a flexible and cost-effective strategy for a relatively industry trend demonstrated by several New Start rail small organization to: projects around the country. • Afford experienced, seasoned project leadership; For example, Portland Streetcar, Inc., (PSI), the • Maintain project continuity through "downtimes" organization responsible for design, construction and in project development; and operation of the local Portland OR street railway system • Access specialty skills and disciplines not required (differentiated from Tri-Met, the regional transit agency on an on-going basis. responsible for the more extensive light rail transit system). PSI, in fact, has been labeled a "virtual organization" with PLANNING PHASE no permanent staff. The CEO and marketing positions are The following diagram outlines the staffing requirements filled by consultants from the firm that provides design for QSCRA proposed during the initial planning phases of services to PSI (the CEO is only needed about 40 hours a project development. month). Operations and maintenance managers are seconded City employees, whose service represents an in- kind contribution toward the "local match" provided by the City of Portland for state and federal grants. Operating and maintenance employees are provided by Tri-Met under contract to PSI and extraordinary maintenance requirements (such as repairs to track or overhead power wires) are performed by Tri-Met employees under a defined schedule of hourly costs. Another similar example is the new Music City Star (MCS) commuter rail service starting up in Nashville TN. MCS design, construction and operations are being conducted under the auspices of the Metropolitan Planning Organization (MPO, the local equivalent of DVRPC). The effort is led by the MCS Commuter Rail Direction, whose services are supplied through a transit consulting firm. Design and construction is provided through consultants and other contractors. Rail operations are provided by a QSCRA activities in this phase would typically consist third-party contractor. of coordination with the counties, municipalities and rail These strategies are particularly pertinent to a project in carriers, developing funding options through PennDOT, development phase, typified by a "stop and go" nature with DVRPC and other potential sources, managing consultants periods of extreme activity punctuated by long hiatuses during the Alternative Analysis and related studies. Three waiting for oversight reviews, third-party approvals, and staff positions are recommended to support this level of re-initiation of funding streams. Maintaining a permanent activity, balancing the need for technical proficiency with staff throughout the "downtime" would represent a the economic realities of small organization dynamics: significant overhead burden. Contracting for key positions • Executive Director providing overall management, administration and policy direction

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of the QSCRA organization in conjunction with the and final engineering activities by consultants, assemble QSCRA Board of Directors (which is also the design-bid documents, solicit a design-bid contractor, BCTMA Board's QSCRC). coordinate operations and station area planning with local • Program Coordinator providing day-to-day interests and conduct public outreach efforts (the latter management of the Quakertown-Stony Creek rail especially if NEPA project assessments are also being restoration efforts, including local coordination, conducted during this stage of development). developing funding options, and managing Again, the appropriate mix of full-time and consultant consultants. staff will need to be determined that will best manage costs • Project Planner providing administrative and and support the goals and objectives of the QSCRC Board analytic support to Quakertown-Stony Creek rail of Directors. restoration efforts under the direction of the Rail During this phase, the Executive Director and Rail Program Coordinator. Program Director positions would likely be needed on a The appropriate mix of full-time and consultant staff daily basis and may be warranted as full-time, permanent that will best manage costs and support the goals and staff (the latter possibly representing a logical advancement objectives of the QSCRA Board of Directors will need to be determined. The Program Coordinator position is envisioned as full- time permanent staff position throughout the planning phase of project development. This individual would provide a continuing point-of-contact for the Quakertown- Stony Creek rail restoration efforts on a daily basis. In contrast, the services of the Executive Director and, to a lesser degree, Project Planner likely would not be needed on a daily basis and may be more cost-effectively supplied through an on-call services agreement with a full service consulting firm.

ENGINEERING & CONSTRUCTION PHASE QSCRA staffing requirements would increase during the engineering and construction phases of project development. However, the magnitude and direction of those increases would vary considerably depending on the approaches selected to project engineering and construction (e.g.: design-build vs. design-bid-build). The following chart illustrates a typical organization structure for the engineering phase of project development under a design-build approach (additional staff positions under the directorial level are not shown). Intensive and diverse staff resources are needed to manage preliminary

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for the Program Coordinator from the planning phase). organization"). Assuming that direct operation is an The subordinate directorial posts all warrant a full-time unreasonable assumption, the following chart illustrates a commitment during the engineering and, to a lesser degree, typical organization structure for rail operations by a small construction phases of the project, but will not be needed agency under the other two approaches. after the start of revenue service. Therefore, these may best Four staff positions are expected to be required at this be filled by seconded contractual staff supplied under an phase of a project assuming a contracted service option: on-call services agreement with a full-service consulting • Executive Director providing overall firm. management, administration and policy direction OPERATING PHASE of the QSCRA organization in conjunction with the QSCRA Board of Directors (which is also the QSCRA staffing requirements would ultimately decrease BCTMA Board's QSCRC). for the operations phase of project development. The magnitude and disciplinary requirements of the permanent • Rail Service Manager providing day-to-day staff would vary considerably depending on the approach management of the Phase 1 operations and selected to service delivery ("turnkey" contracted service, maintenance through third-party contractors, direct operation, or an amalgam such as the PSI "virtual service planning, and customer service. • Development Manager, providing day-to-day management of the development of subsequent phases of Quakertown-Stony Creek rail restoration efforts. • Management Analyst providing administrative and analytic support to Quakertown-Stony Creek rail operations and restoration efforts under the joint direction of the Rail Service and Development Managers. The appropriate mix of full-time and consultant staff will need to be determined that will best manage costs and support the goals and objectives of the QSCRC Board of Directors. The Management Analyst, Rail Service and Development Manager positions should be full-time permanent staff positions. The Executive Director likely would not be needed on a daily basis and may be more cost-effectively supplied through an on-call services agreement with a full service consulting firm.

START-UP PROCEDURE FOR NONPROFIT The laws and regulations that govern the formation of nonprofit are administered by the Pennsylvania

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Department of State’s Corporation Bureau and the Internal • Establish an accounting system: Designate and Revenue Service. A start-up action plan is listed below: record all spending and monetary transactions to • Identify the purpose of the organization: Define meet current and potential spending needs. the organization’s propose, goals, and mission • Obtain a Taxpayer ID number from the IRS: statement and make this available to the public and This number will be used to file returns and all individuals that could potentially be involved. withhold income tax for the organization. • Identify the structure of the organization: • File for tax-exempt status from the IRS: Apply Determine what type of organization will be for exemptions in accordance with federal law. established and delegate who or what group of • File for PA tax-exempt status from PA Dept. of people will be responsible for elements of the Revenue: Apply for exemptions in accordance organization. with state law. • Form a Board of Directors: Delegate a group of • Establish personnel policies: To maintain the individuals that will help guide the organization integrity and proficiency of the organization, toward its goals through assistance in development, guidelines regarding personnel should be defined strategizing, and fund raising. and enforced. • File articles of incorporation with PA • Register for unemployment compensation with Department of State: Obtain recognition of the PA Office of Employment Security: All nonprofit organization from the Commonwealth, its intents, organizations must participate in establishing a and structure so that the organization can function source of compensation in case of unemployment. as an incorporated entity under state law. • Obtain liability insurance. • Write by-laws: Construct a set of regulations that will guide the organization toward accomplishing its goals and fulfill its mission. The presence of an attorney is suggested. • Write a code of ethics: As a potential FTA grantee, this could be important to further certify the organization’s financial independence from Bucks County TMA and can address FTA’s lobbying restriction. • Develop a strategic plan: Develop a plan of tangible and well defined actions to achieve the organization’s purpose, designate staff responsibilities in completing these tasks, and identify and prioritize the actions of the organization. • Establish a record-keeping system: Document and preserve all elements of the organization.

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NEXT STEPS restoration program (Shelly to Center City Philadelphia) to the regional transportation This section presents a "first cut" of the next steps improvement plan (TIP). necessary within the year for the restoration of • Execute a MOU between QSCRA and the Counties Quakertown-Stony Creek rail service in a timely manner. establishing QSCRA as the Counties' agent in The highest priority should be accorded the first two bullets exercising their rights and responsibilities as FTA under Organizational Steps so that proposed goals and grant recipients with respect to the Quakertown- objectives for the program and its component phases may Stony Creek rail restoration program. be formally deliberated and acted upon by a public body. The first act of said body should be to review and revise • Apply to FTA for funds to conduct an Alternatives this list of next steps. Analysis for the Quakertown-Stony Creek rail restoration program. ORGANIZATIONAL STEPS ORGANIZATIONAL STEPS • Hire a consultant to produce an Alternatives • Seek approval from BCTMA Board for BCTMA Analysis and recommendations for a LPA, under staff to assume the leadership role in the restoration the direction of QSCRA. of Quakertown-Stony Creek rail service, in • Work with the Counties, FTA Region 3, and coordination with Bucks and Montgomery DVRPC to gain approval of the recommended Counties, SEPTA and DVRPC. LPA. • Establish the QSCRC as a standing committee of • Apply to FTA for funds to enter the Preliminary the BCTMA Board with membership comprised of Engineering phase of project development. BCMTA board members and ex-officio representation from both County Planning COORDINATION STEPS Commissions, FTA Region 3, PennDOT, SEPTA, • Work with the Counties and SEPTA to coordinate CSXT, EPRY, municipalities and local shipper transit service planning in the Quakertown-Stony associations. Creek corridor. • Charter a new nonprofit corporation associated • Work with the Counties and SEPTA to establish with but independent of BCTMA, along the lines long-term strategies for the maintenance and of those proposed herein for QSCRA. management of the Bethlehem and Stony Creek • Hire a part-time QSCRA Executive Director Lines assets through QSCRA. through an on-call services contract. • Work with the Counties, SEPTA NS, CSXT and • Execute a MOU between BCTMA and QSCRA EPRY, in conjunction with local shippers governing administrative and resource associations, PennDOT and DVRPC, to coordinate management. short term funding and design strategies to improve • As project activities increase, hire a full-time rail track conditions on the Bethlehem and Stony Creek program manager and project analyst either Lines. directly or through an on-call services contract.

PROJECT DEVELOPMENT STEPS • Work with the Counties and DVRPC to add the full extent of the Quakertown-Stony Creek rail